Russian Semiconductor Industry Envisions 65nm Technology and Beyond

Russian Semiconductor Industry Envisions 65nm Technology and
Beyond

By Heinz Kundert, president, SEMI Europe

After my first visit to Russia after the
Presidential elections on March 4th, I’m more optimistic about better
investment conditions for semiconductor and related technologies in the years
to come. Based on interactions with representatives of the government, industry,
science and investment funds, I believe that the industry as a whole can expect
more funding. Furthermore, Russians accession to the WTO
will reduce import taxes close to zero by the end of 2012. There is also a noticeable
sense of urgency about removing trade barriers and other time-consuming
bureaucracy, especially for high-tech products.

Sitronics
(Mikron)
and Angstrem remain flagship
companies in the Russian semiconductor industry. Both companies will further
invest into “More than Moore” applications. Mikron has just opened a new fab
with 200mm and 90nm nodes; it has also announced plans to build a new fab for
300mm and 65nm. The odds for the new fab are good; however, the outcome will depend
on government funding. Angstrem will finally complete the Angstrem-T project
that has been pushed out for some time. It seems that financing is secured.
They expect first devices coming out of the new line by 2014.

Crocus
Nano Electronics (CNE),
a joint-venture between Santa Clara-based Crocus Inc. and the Russian national
investment fund Rusnano, burst onto the scene with investment of around US$ 300
million. Their plan is to enter the MRAM market with 90nm, 65nm and finally
even 45nm node size. CNE will address key markets such as storage, mobile
communications, networking and cloud computing. In addition to general purpose
memory applications, Crocus' TAS MRAM technology will serve specific uses in
smartcards, network processing, biometric authentication, near-field
communications (NFC), and secure memory. The capital spending will occur in the
next two years. CNE will build the new fab in the new “Moskvitch” High-Tech Industrial
Park southeast of Moscow. The park will eventually have capacity of around 330’000m2.

There is nationwide interest in Russia in the
transition to LED. Currently, the
Russian business model is to address lighting systems market rather than to
produce LED devices. Optogan is the flagship in LED with high investment in
lighting systems. Sapphire production technology has been invented and patented
by Russian companies, and a vital materials market in various regions of the world
is currently developing for LEDs manufacturing. We have identified eight
potential material makers in Russia which have the power to be globally competitive
in a fast-growing market (see Russian Market Report update).

In Photovoltaics,
Russia is behind with regard to national legislation for Feed-In Tariffs and
Grid Development as well as cell and module production. However, Russia has
interests in developing the renewable energy market although Russia is less
driven by the pains of rising energy costs like in the West. One of the most
competitive business opportunities might become Polysilicon production in
Russia. Nitol funded by Rusnano has aggressive production output plans and it seems
to be price competitive. Furthermore, it appears that Russia is working on a
Feed-In-Tariff system, however, no details are known as of today.

Skolkovo, the so-called
“Russian Silicon Valley” seems to be shaping up. According the Skolkovo IT
cluster representatives, there are already 170 applications of start-up
companies who announced interest in doing research in the Skolkovo Science Park
and 40 of them have already received grant approval. Eligible companies will
move into the Skolkovo Science City as of 2013. Investments are mainly done for
research equipment and activities.

Bottom-line: Russia is set to go ahead with the
modernization plan that includes Microelectronics and related industries — although
there are still many issues to be overcome. The mood is positive and investment
and business opportunities for Western companies exist… for those willing to
work with Russian partners towards combined success.

If you want to be more involved, you can exhibit
at or visit SEMICON Russia which will be held from May 14-16 in Moscow (www.semiconrussia.org). Representatives of
most of the mentioned companies and institutes will present their investment
plans for the years to come. Also contact SEMI if you would like to review the updated
Russian Market Report.

SEMI’s Involvement: SEMI strongly supports the industry development in Russia. SEMI is
involved in industry advocacy and public policy, working with high-ranking
government officials. The annual SEMICON Russia exhibition and technical
conferences support the industry. In addition, technology and industry experts
visit the EU, leading companies and institutes, and expositions and
conferences.

To support Russian development, SEMI also has a Russian
Advisory Committee with 15 members from Russia and Western Europe, as well as
partnerships with High-Tech Clusters, Special Economic Zones, the Russian PV
Industry Association, the Russian LED Industry Association, and the Renewable
Energy Association of Ukraine.